Hello! Thank you for your question today. My goal is to provide you with the information you seek.
Please note: (1) this is general information only, not legal advice; and (2) I will provide you with honest information and not necessarily to tell you might be hoping to hear.
A shareholder is an owner of the corporation but does not have to participate in the day to day operations of the company nor be on the board of directors
. A corporation is governed by the board of directors and the day to day management of the corporation is carried out by the officers of the corporation. The shareholders elect the board of directors and the board of directors elect the officers.
A shareholder is shielded from personally liability for claims, debts and actions against the corporation.
There are certain situations where the shield from personal liability could be pierced such as fraud by the shareholder or the corporation was set up for the purpose of committing fraud.
A shareholder is an owner but does not have to participate in day to day management but does retain voting rights to elect the board of directors.
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All states have intricacies in their laws and any information given is simply information only and specifically is not intended to be, nor does it constitute, legal advice. This communication does not establish an attorney-client relationship with you.